So your tenant has breached the Lease and you want to know what
to do next?
Under what circumstances has your tenant breached the Lease?
Have they breached a fundamental obligation under the
Are they behind in rent (i.e more than 14 days in arrears);
Failure to comply with notice served by the landlord for a
breach under the Lease.
Repudiated the Lease
If the tenant has breached a fundamental obligation under the
lease, then this may be deemed repudiation by the courts. A
fundamental obligation under a lease may include:
Abandonment of the premises;
Abandonment of premises including a failure to pay rent and
other covenant breaches;
Gross breaches of covenant for quiet enjoyment.
If you, the landlord, then wish to treat the breach as a
repudiation you can then terminate the lease. To terminate
the lease the landlord needs to serve a notice specifically stating
the breach leading to repudiation and then state the date the lease
will come to an end. After this date the Landlord can
re-enter the premises.
If the tenant is in arrears by more than 14 days the Landlord
can proceed with re-entering the Premises. The items left at
the premises by the lessee under clause 12.3 of the Lease become
the property of the lessor and you can charge the lessee for the
cost of making good the premises (back to the state and condition
that the lease required the property to be kept in) and for the
removal of the remaining items.
Under clause 12.6 you must do all things to avoid increasing any
losses including by selling the items left by the lessee and
applying any security deposit or bank guarantee to the arrears.
Failure to comply with Notice
The Landlord must ensure they serve a notice clearly stating the
breach complained of. If that breach can be
remedied, then the Landlord can require the Tenant to remedy the
breach. If the Landlord has the right to claim compensation
or the breach then the notice must state the amount of compensation
Once that notice is served the tenant has until the date stated
(which must be a reasonable period of time in the circumstances) in
the notice to remedy the breach or pay the required compensation
then the Landlord can act on their right to re-enter the
If the tenant does not comply with the notice within the period
of time required then the Landlord gains the right to re-enter the
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Warranties can be risk-shifting mechanisms when the party giving the warranty is not the party at fault for the defect.
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